Trump Tariff scared investors, the stock market at a 3 -month low, how will the next week be?
Market ki baat Share market review: Due to American duty concerns and extensive selling in global markets, negative perception in the Indian stock market was dominated this week. Investors recovered profits in the market after Trump announced the highest 50 per cent tariff on India. The Sensex and Nifty reached a 3 -month low. Know how the market trend will be in the coming week and what to do investors?
How was the Sensex and Nifty move: On the first day of the week on Monday, on August 4, there was a tremendous jump in the stock market. The Sensex rose 418.81 points to close at 81,018.72 points, while the Nifty also rose to 157.40 points to 24,722.75 points. The market showed a decline in the next 2 days. On August 5, the Sensex was lost 308.47 points to 80,710.25 points and the Nifty was at 24,649.55 points due to loss of 73.20 points. On August 6, the Sensex 166.26 points were broken and the Nifty also saw a decline of 75.35 points.
On August 7, the market remained under pressure throughout the day due to the trump tariff. However, the Sensex gained 79.27 points to 80,623.26 points due to a tremendous rise in the last 1 hour. The Nifty also rose 21.95 points to 24,596.15 points. On the last day of the week, investors sold tremendously. The Sensex fell 765.47 points to close at 79,857.79 points and the Nifty closed at 24,363.30 points. This week, the Sensex fell by 742.12 points, or 0.92 percent while the Nifty was in loss of 202.05 points, or 0.82 percent. This week the Indian stock markets closed at a 3 -month low.
Market moves fixed from these factors: The Indian stock market continued to decline for 6 consecutive weeks amidst the continuing of selling of foreign institutional investors and American duty concerns. The market perception was affected by Trump’s warning of no trade talks till Trump’s announcement of 50 per cent tariff on India and not resolving the controversy. The initial 25 percent duty declared by the US on Indian imports came into effect from Thursday. At the same time, 25 percent of the 25 percent fee leveled on purchasing Russian oil is going to be implemented from August 27.
Domestic investors tried their best to handle the market amid heavy selling of foreign investors. The market did not fluctuate much in the first 4 days of the week. However, the major decline on the last day increased the disappointment of investors. The Reserve Bank’s decision for a stable repo rate also remained in accordance with the market expectations.
How will the next week be: Investors need to be alert next week due to the increased pressure on India by Trump. The next week’s trump and Putin’s conversation can also affect the market move. Trump tariffs are expected to adversely affect areas such as textile, sea products and leather exports.
Listing of NSDL was positive: The stock of National Securities Depository Limited (NSDL) climbed 17 percent against the issue price, making a brilliant start on the day of its market listing on Wednesday. The NSDL business on BSE started at a price of Rs 880 per share, which is 10 percent more than the issue price of Rs 800. At the end of the trading, NSDL’s stock closed up 17 percent at a price of Rs 936. It reached 1300.30 at the end of Hafte.
What did SEBI chief say to portfolio managers: SEBI chief Tuhin Kant Pandey would have modernized the appointment, reporting and customer engagement through digital solution to remain competitive to the portfolio managers. He said that some registered portfolio managers’ misleading claims should be curbed. The claims of such exaggerated performances reduce confidence and can prevent the growth of this industry.
What do experts say: Market expert Manish Upadhyay said that negative perception dominated the market. Along with Trump Tarif, his rhetoric also shocked the stock market. He said that the impact of Trump Tariff had to be done. Now the market is expected to be positive. However, there is still pressure on the IT, Pharma sector. Other sectors including the banking sector can turn the market towards a positive direction.
Upadhyay said that now the market is looking at Prime Minister Modi with hope. Investors hope that India will give a befitting reply to the US with the help of Russia and China. Everyone will keep an eye on Trump and Putin’s meeting on August 15.
Edited by: Nrapendra Gupta
